Chapter 02: Quiz Questions

Which of the following statements are true? a. Using source data automation or well-designed turnaround documents and data entry screens helps ensure captured data are accurate and complete b. If the sum of all subsidiary ledger account balances does not equal its general ledger control account balance, a recording error has occurred c. Online, real-time processing updates transactions as they occur, helping ensure stored information is current and useful in making decisions d. It is usually best to let a user determine what data to input rather than have data input screens list the data the user needs to enter e. A group of codes is derived from the description of the item and is usually easy to memorize

A,B,C

Which of the following statements are true? a. A chart of accounts facilitates preparing financial statements because data stored in individual accounts can easily be summed for presentation b. A database query can provide the information needed to deal with problems and questions that need rapid answers or action c. Repetitive and frequently used database queries are usually developed by information systems specialists d. Transaction files are permanent and must be maintained for several years for backup purposes e. A journal entry shows accounts and amounts to be debited and credited

A,B,E

Which of the following statements are true? a. To ensure credit sales policies are followed, the system can be programmed to check a customer's credit limit and payment history b. A transaction file contains records of individual business transactions and is similar to the general ledger in a manual AIS c. An ERP system uses a centralized database to share information across business processes and coordinate activities d. It is difficult for an ERP system to provide management with up-to-date information needed to plan, control, and evaluate an organization's business e. Use of pre-numbered documents makes it harder to verify that all transactions have been recorded and that none have been misplaced

A,C

Which of the following statements are true? a. turnaround documents are company output sent to an external party and returned as an input document b. data is one of a company's most important resources but to function properly most organizations do not have to have the data readily and easily accessible c. each type of entity possesses the same set of attributes or characteristics of interest that are stored , but the specific data values for those attributes will differ d. Online data processing is almost always cheaper and more efficient than batch processing e. Reaping the potential benefits of ERP systems and mitigating their disadvantages requires conscious effort and involvement by top management

A,C,E

Which of the following statements are true? a. Input controls are improved by using pre-numbered source documents or by the system automatically assigning a sequential number to each transaction b. With mnemonic codes, blocks of numbers are reserved for specific categories of data c. As ERP modules do not automatically trigger additional actions in other modules, it is less important to understand business processes and their interactions d. In an integrated ERP system, undetected data entry errors can automatically propagate throughout the system e. A purchase to pay ERP module facilitates production scheduling, work-in process, quality control, cost management, and manufacturing processes

A,D

Which of the following statements are true? a. An audit trail is a transaction path through a data processing system from point of origin to final output, but not backward from final output to point of origin b. The need for reports should be periodically assessed, because they are often prepared long after they're needed, wasting time, money and resources c. AIS has traditionally been referred to as a transaction processing system because its only concern was financial data and accounting transactions d. Accountants and system developers do not need to understand how data are captured, organized, stored, processed, or assessed e. A master file, like a ledger in a manual AIS, stores cumulative information about an organization

B,C,E

Which of the following statements are true? a. The data capture or input process is usually triggered by a top management decision b. With sequence codes, items are numbered consecutively to account for all items and missing items cause a gap in the numerical sequence c. Cumulative accounting information is stored in general and subsidiary journals d. Computers store data in a field; the fields containing data about entity attributes constitute a record e. Updating done periodically , such as daily or weekly, is referred to as batch processing

B,D,E

Which of the following statements are true? a. Transaction data are almost always recorded in a ledger before they are entered into a journal b. Documents are records of transactions or other company data that can be printed out or stored as electronic images in a computer c. ERP systems are not effective in integrating non financial company operations with a traditional accounting system d. Since batch processing data are current and accurate only immediately after processing it is used for applications that do not need frequent updating e. Well-designed screens improve accuracy and completeness by using checkoff boxes or pull-down menus to present the available options

B,D,E

Which of the following statements are true? a. Online batch processing is where transaction data are entered, edited, and processed as they occur b. ERP implementation costs for large companies with multiple sites are usually about half the cost of the ERP user license c. Well-designed documents and screens improve accuracy and completeness by providing instructions or prompts about what data to collect d. Data in ledgers are organized logically using coding techniques that assign numbers or letters to items to classify and organize theme. In an ERP system, data entry controls such as validating data items and checking them for accuracy at the time of entry are not needed

C,D

Which of the following statements are true? a. Source data and automation devices capture transaction data in paper form at the time and place of their origin b. General ledgers are often used for accounts receivable, inventory, fixed assets, and accounts payable c. Master files are permanent and exist across fiscal periods; individual master file records may change frequently d. When choosing an ERP system, make sure it has a module for every critical company process and that you are not paying for modules that you don't need e. If an ERP system does not meet your needs, it can almost always be inexpensively modified to meet your unique needs

C,D

Definition: Company data sent to an external party and then returned to the system as input. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

c. turnaround documents

Which of the following is NOT an advantage of an ERP system? a. better access control b. standardization of procedures and reports c. improved monitoring capabilities d. simplicity and reduced costs.

d. simplicity and reduced costs

Which of the following is most likely to be a general ledger control account? a. Accounts Receivable b. Petty Cash c. Prepaid Rent d. Retained Earnings

a. Accounts Receivable

Which of the following is NOT a step in the data processing cycle? a. data collection b. data input c. data storage d. data processing

a. data collection

Definition: The steps a company must follow to efficiently and effectively process data about its transactions. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

a. data processing cycle

Records of company data sent to an external party and then returned to the system as input are called: a. turnaround documents b. source data automation documents c. source documents d. external input documents

a. turnaround documents

Which of the following would contain the total value of all inventory owned by an organization? a. Source Document b. General Ledger c. Cash Budget

b. General Ledger

Recording and processing information about a transaction at the time it takes place is referred to as which of the following? a. batch processing b. online, real-time processing c. captured transaction processing d. chart of accounts processing

b. online, real-time processing

All of the information (name, GPA, major, etc.) about a particular student is stored in the same: a. file b. record c. attribute d. field

b. record

Definition: Initial record of a transaction that takes place; usually recorded on pre-printed forms or formatted screens. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

b. source documents

Which of the following is LEAST likely to be a specialized journal? a. sales journal b. cash receipts journal c. prepaid insurance journal d. cash disbursements journal

c. prepaid insurance journal

Which of the following documents is most likely to be used in the expenditure cycle? a. sales orders b. credit memo c. receiving report d. job time ticket

c. receiving report

Definition: Devices that capture transaction data in machine-readable form at the time and place of their origin. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

d. source data automation

How does the chart of accounts list general ledger accounts? a. alphabetical order b. chronological order c. size order d. the order in which they appear in financial statements

d. the order in which they appear in financial statements

Definition: Contains summary-level data for every asset, liability, equity, revenue, and expense account. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

e. general ledger

Definition: Contains detailed data for any general ledger account with many individual subaccounts. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

f. subsidiary ledger

Definition: The general ledger account corresponding to a subsidiary ledger, where the sum of all subsidiary ledger entries should equal the amount in the general ledger account. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

g. control account

Definition: Systematic assignment of numbers or letters to items to classify and organize them.

h. coding

Definition: Set of numbers are reserved for specific categories of data. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

j. block coding

Definition: Two or more subgroups of digits are used to code items. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

k. group code

Definition: Letters and numbers, derived from the item description, are interspersed to identify items; usually easy to memorize. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

l. mnemonic code

Definition: Items are number consecutively to account for all items; missing items cause a gap in the numerical sequence a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

l. sequence code

Definition: List of general ledger account numbers; allows transaction data to be coded, classified, and entered into proper accounts; facilitates preparation of financial statements reports. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

m. chart of accounts

Definition: Used to record infrequent or nonroutine transactions. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

n. General journal

Definition: used to record large numbers of repetitive transaction. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

o. specialized journal

Definition: Path of a transaction through a data processing system from point of origin to final output, or backward from final output to a point of origin. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

p. audit trail

Definition: Something about which information is stored. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

q. entity

Definition: Characteristics of interest that need to be stored. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

r. attribute

Definition: Portion of a data record that contains the data value for a particular attribute, like a cell in a spreadsheet. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

s. field

Definition: Fields containing data about entity attributes, like a row in a spreadsheet. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

t. record

Definition: Contents of a specific field, such as "George" in a name field. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

u. data value

Definition: Stores cumulative information about an organization; like a ledger in a manual AIS. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

v. master file

Definition: Contains records of individual business transaction that occur during a specific time period. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

w. transaction file

Definition: Set of interrelated, centrally coordinated files. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

x. database

Definition: Updating done periodically, such as daily. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

y. batch processing

Definition: Updating each transaction as it occurs. a. data processing cycle b. source documents c. turnaround documents d. source data automation e. general ledger f. subsidiary ledger g. control account h. coding I. sequence code j. block code k. group code l. mnemonic code m. chart of accounts n. general journal o. specialized journal p. audit trail. q. entity r. attribute s. field t. record u. data value v. master file w. transaction file x. database y. batch processing z. online, real-time processing

z. online, real-time processing